Coke And Pepsi Has Shaped The Soft Drink Industry

Decent Essays

Over 100 years, intense rivalry between the two- Coke and Pepsi has totally shaped the soft drink industry of the world (combined they are 73% of the market share). The most battles of the cola wars were fought over the industry in the USA, where the consumption by an average American is 53 gallons of carbonated soft drinks per year. In a competitive struggle, from 1975 to 1995 both had achieved average annual growth of around 10% because of increase in soft drink consumption consistently in US and worldwide. Then this cozy situation was threatened in the late 1990s, when the consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi.
Globalization provides both with unique challenges as …show more content…

Thus, it is important for the brand to have a good reputation in order to have high demand. Pepsi has always focused in building good customer relationship and have successfully done it, despite being in a highly competitive market. But, damage can be caused through various other sources like indulgence in legal issues by the brand or even depletion quality. Pepsi is involved in legal battles from a long time and do not seem to come out of it any time soon. Also, being a part of the beverages sector it is imperative for the brand to maintain its quality and Pepsi has always kept quality as its top priority.

3.) Aging and other factors Age of a person has a direct impact on the lifestyle of a person. Since, Pepsi does not have control over this factor it focuses on the segment of market it already has, that is, the millennials. For doing this, Pepsi comes up with innovative and out of the box marketing ideas time to time.

4.) Economic and legal …show more content…

In case of shortage of the raw materials the prices have to be increased in order to match the expected the expected revenue which further brings down the demand. Similarly, natural calamities also affect the demand sometimes in the same manner.

6.) Cultural factors

To make its place in a society, a brand has to connect with the social values prevailing in the culture. Pepsi is currently associated with the western culture and is trying to make its place in the eastern one too. Various cultures hold different perceptions which have to be assessed carefully by Pepsi to localize its brand in new cultures.


1. Sales Maximization: Sales Maximization involves business charging lower price to capture a large market share. Profit is a goal of the firm but it gives more priority to sales maximization as its efficient management and cost reduction has already given them much profits. Pepsi owns more than 25% of the market shares and also dominates the sales market. So, it marks its price in such a way that it is pocket friendly for the consumers. In order to promote sales maximization, it aims to have a strong market position and launches its products in more than 200

Get Access